In the 80s and 90s, there was an electronic store chain called The Wiz with a catchphrase so infectious that people used it interchangeably with the name. The commercials are still on YouTube and the muzak, synth-pop jingle rings: Nobody beats the Wiz.
It’s a piece of pop culture that my editor introduced me to as we’ve been tracking cloud security startup Wiz’s ascension, and the tune seems to come up a lot lately. Yesterday the company notched its latest jingle-worthy milestone when it announced it had raised $1 billion, at a $12 billion valuation.
The Series E round was led by Andreessen Horowitz, Lightspeed Venture Partners, and Thrive Capital. Existing Wiz investors include Index Ventures, Cyberstarts, Greylock, Greenoaks, Salesforce Ventures, Sequoia Capital, and Wellington Management.
This is a pretty big step up from the last round the company raised, Wiz CEO and cofounder Assaf Rappaport told Term Sheet over the phone.
“It goes to the maturity of the company and our ability to be bolder—focus on innovation, leadership, go-to-market, R&D, but also inorganic growth,” said Rappaport. “I think we’re mature enough to be looking to grow inorganically and organically, so that’s different. There are also different kinds of investors.”
Andreessen Horowitz, for example, is a new investor in Wiz, as the company looks to ramp up its already-running M&A strategy. There are two categories of acquisitions that Rappaport is pursuing right now. The first are in the mold of Gem Security, the company’s latest acquisition (confirmed exclusively by Fortune and similarly a startup with roots in Israel). Those companies are the “stellar companies, growing super fast with an amazing team and amazing technology,” said Rappaport.
And then there’s a second category—the “ex-unicorns, companies that were super hype in 2020, 2021 and, since then, they’re maybe not projected to be a public company, and their investors are looking for an exit,” Rappaport said.
The ex-unicorn business is a tricky one, of course. Recently, Wiz was reportedly looking at a deal for cybersecurity firm Lacework that fell through. (The company says it is “always exploring compelling M&A opportunities.”)
An IPO is very expressly the long-term plan for four-year-old Wiz.
“I think that the recent round is actually going to accelerate us towards an IPO,” said Rappaport, who suggested he’s eyeing the next two to three years, depending on market conditions.
As we talk, Rappaport uses the phrase “winner takes all” more than once. I asked him about it.
“I think basically it’s true to technology as a whole,” he said. “If you look in different markets, I would say that in cybersecurity, the ability for a company to continue to invest more, innovate, and have more customers…it’s like a flywheel, in a way. We’ve seen this before with Endpoint and CrowdStrike—they’re kind of becoming an indisputable market leader. We saw that with network security with Palo Alto and, hopefully, we’re starting to see it with cloud security.”
You could perhaps say that the goal is this: Nobody beats the Wiz.
See you tomorrow,
Allie Garfinkle
Twitter: @agarfinks
Email: alexandra.garfinkle@fortune.com
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Joe Abrams curated the deals section of today’s newsletter.
VENTURE DEALS
- Atlan, a Singapore-based platform for finding and storing AI-ready data, raised $105 million in Series C funding from investors including GIC, Meritech Capital, and Salesforce Ventures.
- Insempra, a Munich, Germany-based developer of sustainable ingredient alternatives for the beauty, personal care, food & nutrition, and fashion industries, raised $20 million in Series A funding from existing investors EQT Ventures, BlueYard Capital, Possible Ventures, Taavet Sten, Acequia Capital, and others.
- Nudge Security, an Austin, Texas-based SaaS security and governance management platform, raised $16.5 million in seed funding from Forgepoint Capital and Ballistic Ventures.
- Futura, a Milan, Italy-based educational platform that uses AI to personalize learning trajectories, raised €14 million ($15 million) in Series A funding. Eurazeo led the round and was joined by existing investor United Ventures and new investor Axon Partners Group.
- Backpack Healthcare, an Elkridge, Md.-based online pediatric mental health care provider, raised $14 million in Series A funding. PACE Healthcare Capital led the round and was joined by Techstars, Collab Capital, Bridge Builders Collaborative, Portland Seed Fund, Hopelab, Rethink Education, Genius Guild, ECMC, Unlikely Collaborators, and angel investors.
- Blackwell Security, an Ann Arbor, Mich.-based cybersecurity platform designed for the health care system, raised $13 million in funding from General Catalyst and Rally Ventures.
- Numeric, a San Francisco and New York City-based AI-powered accounting automation platform, raised $10 million in seed funding from Founders Fund, Menlo Ventures, 8VC, Long Journey, Friends & Family Capital, and others.
- Panax, a New York City-based AI-driven cash flow management platform designed for large companies to optimize liquidity and gain control of complex treasury operations, raised $10 million in Series A funding from Team8 and TLV Partners.
- PAXAFE, an Indianapolis, Ind.-based support provider for the cold chain (shipments that need to be refrigerated), raised $9 million in Series A funding. Framework Venture Partners led the round and was joined by M12 (Microsoft's Venture Fund), Rosecliff Ventures, Elevate Ventures, AngelList Quant Fund, Gaingels, Mana Ventures, and existing investors.
- Niobium, a Dayton, Ohio-based microelectronics company, raised $5.5 million in seed funding. Fusion Fund led the round and was joined by Morgan Creek Capital, Rev1 Ventures, Ohio Innovation Fund, and Hale Capital.
- Swypex, a Cairo, Egypt-based financial management platform, raised $4 million in seed funding. Accel led the round and was joined by Foundation Ventures, The Raba Partnership, and angel investors.
- Hemera, a San Francisco-based Web3 infrastructure company, raised $2.6 million in funding. LIF Capital and Nomad Capital led the round and were joined by SNZ, Chainlink, and angel investors.
- mimic, a Zurich, Switzerland-based startup developing an AI-powered robotic arm and humanoid hand, raised $2.5 million in pre-seed funding. Founderful led the round and was joined by another.vc, Tiny.vc, and angel investors.
- Axmed, a Basel, Switzerland-based B2B marketplace designed to provide low and middle income countries with access to critical medicines, raised $2 million in seed funding from Founderful.
PRIVATE EQUITY
- Mill Point Capital acquired Proficium, a Union City, Calif.-based designer and manufacturer of cables and other products for commercial AI infrastructures, data centers, and enterprise companies. Financial terms were not disclosed.
- Silver Oak Services Partners led the recapitalization of Beary Landscaping, a Lockport, Ill.-based provider of landscaping and snow removal services. Financial terms were not disclosed.
- Special Aerospace Services, backed by Godspeed Capital, acquired Quintron Systems, a Santa Maria, Calif.-based provider of communications technology for the space and defense markets. Financial terms were not disclosed.
- TPG Rise Climate agreed to acquire Olympus Terminals, a Long Beach, Calif.-based storage provider for renewable fuels and refined products. Financial terms were not disclosed.
- Turnspire Capital Partners agreed to acquire the nutraceuticals business of Ashland (NYSE: ASH), a Wilmington, Del.-based specialty materials developer. Financial terms were not disclosed.
EXITS
- The American Heart of Poland Group agreed to acquire Scanmed, a Krakow, Poland-based private health care provider, from Abris Capital Partners. Financial terms were not disclosed.
- Monomoy Capital Partners agreed to acquire a majority stake in Southern Exteriors, a Jackson, Ga.-based installer of siding, roofing, gutters, windows, and other exterior building products, from The Halifax Group. Financial terms were not disclosed.
OTHER
- Akamai (NASDAQ: AKAM) agreed to acquire Noname Security, a San Jose, Calif.-based API security company, for approximately $450 million.
- Docusign (NASDAQ: DOCU) agreed to acquire Lexion, a Seattle, Wash.-based provider of AI-powered agreement management software, for $165 million in cash.
- Great-West Lifeco acquired a minority stake in Power Sustainable, a Montreal, Canada-based climate-focused investment manager. Financial terms were not disclosed.
- Rexel agreed to acquire Talley, a Los Angeles-based distributor of wireless infrastructure products and solutions. Financial terms were not disclosed.
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